Serious Crypto Warning Issued As Binance Collapse ‘Countdown’ Suddenly Begins—BNB Leads


Binance, the world’s largest bitcoin and crypto exchange by volume, has been hit by a record-breaking $4.3 billion fine following a multi-year probe by U.S. authorities (just as Coinbase reveals a “massive” $48 trillion “opportunity).

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The bitcoin price, double where it was when Binance rival FTX collapsed a year ago, has swung wildly since reports of the settlement first emerged, with Binance’s BNBBNB cryptocurrency crashing by 10% and dragging other top five coins ethereum and XRPXRP lower.

Now, as Argentina could be suddenly poised to “supercharge” bitcoin, one feared short seller has warned the countdown to Binance’s eventual collapse has begun—with traders already yanking around $1 billion from the platform.

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and ethereum rival has fallen sharply over the last 24 hours, weighing on the bitcoin price, ethereum and XRP.dpa/picture alliance via Getty Images

“There’s no way Binance has that kind of cash without dipping into customer assets,” Nathan Anderson, the founder of feared short-seller Hindenburg Research, a New York-based investment management company, posted to X (Twitter), referring to the exchange’s $4.3 billion fine. “A year ago they couldn’t respond to whether they’d survive a $2.1 billion hit. The countdown to insolvency has begun.”

Anderson pointed to a CNBC interview with Binance founder Changpeng “CZ” Zhao, who has stepped down from the company as part of the historical settlement, in which CZ failed to say whether Binance would be able to continue after a $2.1 billion fine.

Meanwhile, Binance users pulled around $1 billion in various cryptocurrencies—including bitcoin, ethereum, BNB and XRP—from the exchange over the last 24 hours following news breaking of its $4.3 billion fine, according to data from DeFiLlama.

For comparison, FTX, the cryptocurrency founded by Sam Bankman-Fried (SBF), imploded last year after suffering outflows of around $6 billion in a matter of days.

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highs but remains well above its pre-2020 price, along with bitcoin, ethereum and XRP.Forbes Digital Assets

However, other bitcoin and crypto market watchers think Binance may ultimately be able to survive the hefty fine.

“Market reaction (BNB coin, withdrawals from Binance) suggests so far that Binance can swallow these penalties,” Tim Bevan, the chief executive at crypto exchange-traded product provider ETCETC Group, said in emailed comments.

“If they can absorb any fine, this draws a line under what has hitherto been the biggest single risk in the crypto ecosystem, which is the current liquidity concentration on Binance, regardless of the longer-term outlook for this platform.”

Analysts with broker Bernstein have meanwhile said they expect Binance to weather the storm, writing in a note seen by Coindesk that “Binance’s reputation with retail non-U.S. customers has remained strong through the crisis.”

Binance itself, which has lost market share this year to rivals, published a blog post saying it’s “confident” it “will emerge as a stronger company as we lay the foundation for the next 50 years.”

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